Magazine

Revving Up Germany's IPO Market

July 04, 2004

Germany's Postbank was successfully floated on the Frankfurt Stock Exchange on June 23, but only after owner Deutsche Post slashed the share price and the size of the offering. Deutsche Post CEO Klaus Zumwinkel had hoped to raise $3.6 billion by selling 49.9% of Postbank for as much as $43.80 per share. But investors balked at the terms, and he had to content himself with off-loading just 33% at $34.20 a share. Along with a related convertible $1.2 billion bond, the initial public offering -- Germany's biggest in four years -- raised just $3.1 billion. Investment bankers say the deal shows that the IPO market is finally reviving -- at least for companies that price their shares realistically.